Global LED Display Market: Opportunities & Challenges in 2025 and Beyond

Global LED Display Market: Opportunities & Challenges in 2025 and Beyond 🚀

In recent years, the LED display market has undergone rapid evolution. As we reflect on 2024, several key industry trends have emerged, shaping the direction for 2025 and beyond. With technological advancements, expanding application scenarios, and increasing competition, how can businesses seize new opportunities and tackle challenges in this dynamic industry?

At the 2025 TrendForce New Display Industry Conference, Yu Bin, Research Manager at TrendForce, delivered an insightful presentation on the future of the global LED display market. His analysis covered two major aspects:

🔹 Review & Forecast of the Upstream LED Market
🔹 Opportunities & Challenges in the LED Display Industry

This comprehensive market analysis provides critical insights for businesses looking to navigate the next wave of innovations in LED technology.

LED Display Market Overview: Key Trends & Developments 📈

1️⃣ LED Chip Market: Growth Amidst Price Pressures

As the core component of LED displays, the LED chip market has experienced significant growth despite price declines.

💡 2024 Global LED Chip Market Size: $2.96 billion (+9% YoY)
💡 China’s Market Share: $2.28 billion (+9% YoY, 77% Global Share)
💡 Top 10 LED Chip Manufacturers: 93% Market Share

While China and Taiwan continue to dominate global exports, Micro/Mini LED technology remains the biggest growth driver. However, global economic uncertainties could slightly slow the market’s expansion, with a 5% projected growth rate in 2025.

🔹 Mini LED Chip Boom: Demand for Mini LED chips surged, with shipments up 92% YoY, reaching 1.5 million units in 2024.
🔹 COB & MiP Technology: Increased adoption of chip-on-board (COB) technology is driving demand for high-resolution Mini LED displays.

Leading suppliers ZhaoChi, HC SemiTek, and Sanan collectively hold 87% market share, maintaining a strong competitive edge. However, new players like JuChan are entering the market, intensifying competition for 2025 and beyond.

2️⃣ LED Display Packaging Market: Mini LED & Automotive Surge

The global LED packaging market reached $12.7 billion in 2024 (+1% YoY), with Mini LED and automotive applications driving the majority of the growth.

💡 Global LED Display Packaging Market: $1.3 billion (Stable YoY)
💡 Mini LED COB Display Production Capacity: 57,600㎡/month (+126% CAGR)

🔹 SMD LED Market Decline: Traditional Surface-Mount Device (SMD) LEDs are losing ground to MiP and COB packaging.
🔹 Modularization Trends: Both COB and MiP are accelerating the shift toward modular LED display designs, reducing costs and improving efficiency.

With leading packaging firms controlling 80% of the market, 2025 will see continued innovation in high-density LED modules, particularly for high-end commercial displays and virtual production.

3️⃣ LED Display Driver IC Market: Competitive Shake-Up

The global LED display driver IC market was valued at $376 million in 2024, reflecting a slight 1% decline despite a 6% increase in unit shipments (14.37 billion ICs).

🔹 Market Leader: Chipone (集创北方) maintains a dominant 40% market share.
🔹 New Entrants: TBSilicon (by NovaStar) entered the market, disrupting the traditional supply chain.
🔹 Market Outlook: While driver IC prices will continue to gradually decline, technological advancements in energy-efficient solutions (e.g., common cathode technology) will create new revenue opportunities.

As the industry shifts towards high-resolution, energy-efficient displays, driver IC innovations will be key to maintaining performance and cost-effectiveness.

Opportunities & Challenges for the LED Display Market 🌍

Despite economic fluctuations, the global LED display market is projected to grow by 2.8% in 2024, driven mainly by overseas demand.

🔹 Key Growth Regions: Asia, Africa, and Latin America
🔹 Main Growth Driver: Small-pitch LED displays (≤P2.5)
🔹 Projected CAGR (2023-2028): 10%

However, the next phase of industry growth will depend on three critical market shifts:

📌 1. Expansion into Emerging Markets

China remains the global manufacturing hub for LED displays. The industry is shifting from Western markets (US & Europe) to developing regions where demand for cost-effective displays is rising.

🔹 Growing Demand: As LED display costs decline, developing countries are investing more in public infrastructure and commercial digital signage.
🔹 Competitive Advantage: Chinese manufacturers benefit from economies of scale, cost advantages, and global distribution networks.

💡 2025 Outlook: Expect strong demand from non-traditional markets, especially in government infrastructure projects, sports venues, and entertainment hubs.

📌 2. Market Expansion from Large Enterprises to SMBs & Consumers

Historically, LED displays were mainly used by governments and large corporations. However, falling prices have opened the market to small-to-medium businesses (SMBs) and even individual consumers.

🔹 B2B Growth: Retail, restaurants, offices, and event spaces are increasingly adopting LED displays.
🔹 Potential B2C Market: Home theaters, gaming setups, and personal entertainment displays are emerging as new revenue streams.

💡 Key Strategy: Manufacturers are expanding distribution channels, focusing on local resellers and online marketplaces.

📌 3. New Application Scenarios: Virtual Production, LED Cinema & AI-Driven Displays

🔹 LED Virtual Studios: Increasing adoption in film production, gaming, and virtual reality experiences.
🔹 LED Cinema Screens: Over 60 LED cinemas installed in China in 2024, with further price reductions expected.
🔹 LED Rental Market Growth: Concerts, elections, and corporate events boosted the rental LED market to $1.596 billion (+13% YoY).

💡 2025 Projection: AI-powered content optimization and immersive display experiences will redefine how LED screens are used in entertainment and advertising.

Final Thoughts: What’s Next for the LED Display Market?

The global LED display industry remains on a solid growth trajectory, despite market fluctuations. Key takeaways:

✅ Emerging Markets will drive new revenue opportunities 📈
✅ Modularization & AI will enhance efficiency & performance 🏆
✅ New Applications (LED Cinema, Virtual Studios, AI-based Displays) will create long-term demand 🎬
✅ COB & MiP will reshape the industry, driving cost reductions & product innovation 💡

As technology evolves and market demand shifts, businesses must stay ahead by investing in innovation, optimizing costs, and expanding into high-growth regions.